WCTRS advocates fair and just practices in support of the loan trading market. Our committee members strive to preserve a healthy and profitable global market for borrowers and investors.

WCTRS Examines Global Trade and Lending Industry Relations

Trade finance is the financing of international trade like issuing credit, lending, and exporting credit. The preservation of the trade finance industry depends on every country honoring their international trade agreements and abiding by the same rules.

The chart (to your right) examines the growing dependence on financing. Financing isn't limited to domestic entities. Trade finance has opened up a global market extending credit to anyone from anywhere.

For instance, a Chinese company (the exporter) manufacturing products can extend credit to a U.S. entrepreneur (the importer) through a letter of credit. Financial trade services have made global exchange a simple process.

Agreements

Trade agreements are contracts that determine how trade practices and relations will be organized and administered. After all parties negotiate their preferences, an agreement is made.

Because of international trade, global funding opportunities like alternative financing have popped up. Alternative financing appeals to small business owners and individuals who need smaller loans, usually less than $200,000. Even a local farmer or a veteran can utilize this type of funding.

Statistics

The global economy relies on trade finance. According to the World Trade Organization (WTO), the world's economy depends on this financing type for an estimated 80% to 90% of global trade.